Small Business Hawaii

Many came out to the Tea 3 tax rally to protest new tax hikes. In the end, the legislature passed an onerous paycheck deduction long term care tax bill, which Governor Lingle is expected to veto.

The 22nd State Legislature is slated to adjourn May 1. Taxes, bad business bills and budget confrontations continued up to the last minute. A decline in total revenue estimates is expected May 9 when the Tax Revenue Estimating Committee next meets.

In mid-April, during the Conference Committee phase of the winding down Session, House Democrats balked at the Senate-Democrat sponsored 121/2% increase to the General Excise Gross Income Tax and the imposition of a new 1% sales tax in Honolulu. The majority party still solidly supported the controversial Long Term Care payroll tax that the Governor has threatened to veto, in addition to measures to increase the Conveyance Tax, Estate ("Death") tax, Unemployment Compensation tax, a new Passenger Airport Departure Tax, motor vehicle registration hike and other fees. There are budget provisions attempts to add thousands of new full-time state employees at a time when the Governor is urging fiscal restraint and is doing her best to retain all existing essential "warm" bodies.

The Legislature punted responsibility for balancing the $7.5 billion biennium state budget, using external funding sources to make up the deficit. Governor Linda Lingle promised she will do the job if she has to using line item vetoes and other tools.

The Governor continued to focus on three primary areas of improvement: restoring trust in government , educational reform (through decentralization and local control) and economic vitality. Majority party leaders cut the jugular of these bills for this year, leaving hope for minimal economic incentives. Battles developed over the Governor's support for a revised standard deduction, long term care and Ko Olina tax credits and modification to the Act 221 technology credits. Long term care taxation, more state employees, putting back non-classroom education cuts of the Governor and turning down two qualified UH Board of Regent nominees (Shelton Jim On and Edward Sultan) became flash points in partisanship.

The 2003 Session will be remembered for fewer issue debates, more partisan rhetoric and a greater number of introductions than ever before. In the Senate, freshman Republican Gordon Trimble out "no" voted colleague Sen. Sam Slom for the session. Senator Les Ihara continued his lonely battle to make legislators abide by rules, open meetings and proper procedure. Those in power continued to beat back his bipartisan attempts at internal reforms, but at closer vote tallies.

The United States Small Business Administration (SBA) announced the 2003 award winners of various small business awards at its annual luncheon on April 30. Jeanette Otsuka Chang of Kauai's Otsuka Sales & Service was named the Hawaii Small Business Person of the Year by the SBA. A complete list is included with our downloadable newsletter.

Download the May 2003 issue of Small Business News
to read articles including the following:

Tax Director Kurt Kawafuchi is May's Sunrise Speaker
2003 SBA Small Business Awardees Announced
Long Term Care & Responsibility by Dick Rowland
The Obvious is Now Apparent by Lowell Kalapa
Democrats Don't Intend to Change by Malia Zimmerman
Bush Budget: What's In It For Hawaii by Karen Bailey
Working Parents Team Up by Dr. Suzanne Gelb

Small Business News, May 2003 Issue (600k PDF File)

Congressman Ed Case Speaks (photo section)

TEA 3 "NO NEW TAXES" RALLY
Photos from April 17th's KHVH Tea 3 Tax rally.

SBH Logo
Top | Home Page | SBH News Index | Small Business News